(Recasts for U.S. market open)

* Trump again says the war with Iran would end "very

quickly"

* Investors see 48.6% chance the Fed could raise rates in

December

* Minutes from the Fed's April FOMC meeting due later

today

By Anjana Anil

May 20 (Reuters) - Gold prices edged up on Wednesday, as

hopes for a resolution to the Iran conflict pressured oil

markets, relieving some inflation fears and knocking U.S.

Treasury yields from their recent highs.

Spot gold gained 0.4% to $4,499.72 per ounce by 9:10

a.m. ET (1310 GMT). Prices hit their lowest in more than seven

weeks earlier in the session.

U.S. gold futures for June delivery were 0.2% lower

at $4,502.10.

"We've seen a reprieve from the continued increase in

yields. So as a result, we've seen gold prices bounce off the

recent lows," said David Meger, director of metals trading at

High Ridge Futures.

The yield on the benchmark 10-year U.S. Treasury note

ticked lower, after touching its highest level since

January 2025 on Tuesday.

Higher Treasury yields increase the opportunity cost of

holding non-yielding bullion.

"Any type of resolution to the war or opening of the Strait

of Hormuz would be a positive for the gold market in so much as

the expectation would be that interest rates would decline, and

hence that would be opportunistic or helpful to the gold

market," Meger added.

Brent crude futures slipped after U.S. President Donald

Trump again said the war with Iran would end "very quickly."

Still, investors remained cautious over the outcome of peace

talks as the disruption to Middle Eastern supply continued.

Higher fuel costs feed into inflation, forcing central banks

to keep interest rates higher. Despite being an inflation hedge,

non-yielding gold underperforms in high interest rate

environments.

Investors are now pricing in a 48.6% chance the Federal

Reserve could raise rates in December, and an 89.6% chance it

maintains current rates at its next meeting in June, according

to the CME FedWatch tool.

Minutes from the Fed's April Federal Open Market Committee

meeting will be released on Wednesday.

Spot silver rose 1.9% to $75.26 per ounce, platinum

gained 0.5% to $1,932.37, and palladium was down

0.1% at $1,352.75.